South Korea's Kospi index closes little changed at 5,584.87

South Korea's Kospi index closes little changed at 5,584.87

South Korea’s KOSPI index closed at 5,584.87 on March 5, 2026, marking a modest recovery following a historic 12.06% plunge the previous day. The rebound was driven by renewed hopes for U.S.-Iran diplomatic progress, with reports indicating Iran’s Ministry of Intelligence had signaled openness to talks with the U.S. CIA. Global oil prices stabilized, and Wall Street’s resilience provided further support, though geopolitical tensions in the Middle East continued to weigh on risk sentiment.

The index’s sharp intraday volatility triggered a sidecar trading curb, temporarily halting program trading for five minutes. Semiconductor and technology stocks led the rebound, with Samsung Electronics and SK Hynix rising 14.98% and 16.02%, respectively. However, broader market concerns persisted, as rising oil prices and inflationary pressures remained a drag on energy-importing economies like South Korea.

President Lee Jae Myung reaffirmed the government's readiness to deploy market-stabilizing measures, including a 100 trillion won emergency fund, to address heightened volatility. Despite the one-day rebound, the KOSPI remains 116.75% above its level from the same period in 2025 but has retreated from its 52-week high of 6,347.41. Analysts noted that sustained recovery will depend on clarity regarding the duration of Middle East conflicts and their economic implications.

The index’s performance reflects broader regional fragility, with Asian markets broadly on track for significant weekly losses amid escalating geopolitical risks.